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Fixed Income February 2014 - Yields fall and curve steepens

Fixed Income

17 Feb 2014

Demand for G-bonds resumed strongly after Lunar New Year (LNY) and demand was so that the government completed 31% of Q1 T-bond issuance plan. On the secondary market, liquidity dropped 37.5% due to fewer trading days and the yield curve steepened. We note the ministry of Finance plans to raise VND261tn from government bonds in 2014 to help finance the 5.4% of GDP budget deficit.

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